Answered: For each of the following independent…

Business

Accounting

For each of the following independent cases, determine the amount that Abello mus contribute in cash or other assets:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 1CP

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Question

SCORE:
NAME:
PROFESSOR:
SECTION:
Problem #15
Determining a New Partner's Investment Cost
respectively.
P150,000
Accounts Payable
Morales, Capital
Gamino, Capital
Quito, Capital
Total Liabilities and Capital
260,000
P 40,000
710,000
Cash
180,000
Other Assets
160,000
P750,000
Total Assets
P750,000
Assume that the partnership decided to admit Abello as a new partner with a one.
fourth interest.
Required:
For each of the following independent cases, determine the amount that Abello must
contribute in cash or other assets:
1. No goodwill or bonus will be recorded.
2. A bonus of P24,000 is to be paid by Abello and allocated to the prior partners.
3. The partners agreed that total resulting capital should be P820,000 and no goodwill
should be recognized.
4. Other assets are written down by P20,000 and a bonus of P40,000 is paid to Abello
at the time of admission.

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